Bankruptcy has its own language. This glossary explains the terms you will encounter when filing in the Southern District of Florida, written in plain English for Miami residents.
A federal court order that takes effect the moment you file bankruptcy. It stops most creditor actions including wage garnishment, foreclosure, repossession, lawsuits, and collection calls. See automaticstay.org for a complete guide.
The court order that permanently eliminates your obligation to pay certain debts. The discharge injunction (section 524) makes it illegal for creditors to ever try to collect discharged debts. This is the goal of most bankruptcy filings.
A calculation that determines whether you qualify for Chapter 7 based on your income and expenses. Florida median income for one person is $57,963. If your income is below this, you pass automatically. See bankruptcymeanstest.org.
A required hearing where the bankruptcy trustee asks you questions about your finances under oath. Despite the name, creditors rarely attend. Held about 30-40 days after filing at the Southern District of Florida courthouse. See 341meeting.org.
Laws that protect certain property from being taken in bankruptcy. Florida provides a unlimited value (up to half-acre within municipality, 160 acres outside) homestead exemption and protects $1,000 per vehicle plus $4,000 wildcard (section 222.25). See our Miami exemptions guide.
The official document you file to start your bankruptcy case. For emergency filings, a bare-bones petition can be filed first with 14 days to complete the rest.
Detailed forms listing your assets, liabilities, income, expenses, contracts, and financial history. These form the backbone of your bankruptcy case.
A questionnaire about your financial history including recent transactions, lawsuits, payments to creditors, gifts, and property transfers in the years before filing.
A form creditors file to assert their right to payment from the bankruptcy estate. Deadlines for filing claims are set by the court.
The person appointed to administer your bankruptcy case. In Chapter 7, the trustee looks for non-exempt assets. In Chapter 13, the trustee collects plan payments and distributes them to creditors.
The permanent court order under section 524 that bars creditors from ever collecting discharged debts. Violations can result in contempt of court.
Chapter 7 eliminates most debts in 3-4 months through liquidation of non-exempt assets. Chapter 13 reorganizes debts into a 3-5 year repayment plan. Chapter 7 has income limits (means test); Chapter 13 has debt limits ($2,750,000).
A discharged debt is permanently eliminated. You are no longer legally obligated to pay it, and creditors cannot try to collect. The discharge injunction under section 524 makes collection attempts a violation of federal law.
A formula comparing your income to the Florida median ($57,963 for one person). If below the median, you qualify for Chapter 7. If above, allowed deductions may still bring you under the threshold. See bankruptcymeanstest.org.
Laws that protect your property in bankruptcy. Florida provides a unlimited value (up to half-acre within municipality, 160 acres outside) homestead exemption and $1,000 per vehicle plus $4,000 wildcard (section 222.25) vehicle exemption. See our Miami exemptions page.
The trustee asks questions under oath about your assets, debts, income, and financial history. It typically lasts 5-10 minutes. Creditors may attend but rarely do. See 341meeting.org.
Some debts survive bankruptcy and must still be paid. These include child support, alimony, most student loans, recent taxes, debts from fraud, and DUI judgments. See our debt types page.